India will remain the fastest-growing major economy recording a growth of 5.8 percent this year, while the rest of the world will grow by a paltry 1.9 percent, the UN said on Thursday.
The UN's World Economic Situation and Prospects (WESP) report sliced off 0.2 percent from the 6 percent gross domestic product growth projection made last May without affecting India's rank as the country faces headwinds from the global economy.
Overall, the report said: "Growth in India is expected to remain strong at 5.8 percent, albeit slightly lower than the estimated 6.4 percent in 2022, as higher interest rates and a global slowdown weigh on investment and exports."
Next year, the UN expects India's economy to grow by 6.7 percent.
The WESP gave a positive picture of India's jobs scene, noting that its "unemployment rate dropped to a four-year low of 6.4 percent in India, as the economy added jobs both in urban and rural areas in 2022".
For the world, the WESP forecast is 1.9 percent this year and rising to 2.7 percent next year.
In New Delhi, India's President Droupadi Murmu credited India's economic performance to "its leadership".
"India has been among the fastest-growing major economies because of the timely and proactive interventions of the government. The 'Aatmanirbhar Bharat' initiative, in particular, has evoked great response among the people at large," Murmu said in her Republic Day speech.
China, which came in second, is projected to grow by 4.8 percent this year and 4.5 next year, after a 3 percent growth in 2022.
The US economy is projected to grow by 0.4 percent this year and 1.7 percent the next.
For South Asia as a whole, the report said the region's "economic outlook has significantly deteriorated due to high food and energy prices, monetary tightening and fiscal vulnerabilities" and it forecast a 4.8 percent growth year and 5.9 percent next year.
This was buoyed by India as the report said: "The prospects are more challenging for other economies in the region. Bangladesh, Pakistan, and Sri Lanka sought financial assistance from the International Monetary Fund (IMF) in 2022." (KB/IANS)